The average mortgage amount in the Canary Islands rose by almost 70% in ten years

The average mortgage amount for home purchases nationwide has increased in a decade, between August 2015 and the same month this year, from just over 100,000 euros to nearly 170,000, a rise of almost 63%, a percentage that in some autonomous communities, such as Madrid and Andalusia, has soared above 70% and in the Canary Islands is 68%.

According to data from the National Statistics Institute (INE), in August 2015 the average mortgage amount for home purchases was 104,318 euros, compared to 169,650 euros in August of this year, the latest month for which records are available.

This average increase of 63% is slightly below the rise in housing prices over that decade, a period in which the square meter has gone from 1,524 to 2,679 euros, representing a difference of nearly 76%.

However, in two autonomous communities, Madrid and Andalusia, the increase in loan amounts far exceeds the average.

In Madrid, the average mortgage amount has practically doubled, going from 141,847 to 276,158 euros, although this increase of 95% is half of what the price per square meter has risen in the region, where it has gone from 1,557 to 4,384 euros.

In Andalusia, the increase has been 77%, with the average mortgage going from 89,042 to 157,647 euros, for a real estate market in which the square meter has become 59% more expensive.

Among other factors, experts attribute the rise in housing prices in these two communities to the sale of free housing by foreigners, which in the first half of this year alone grew by 2% year-on-year to reach 71,155 transactions.

British, Moroccan, and German nationals were at the forefront and accounted for 19.3% of the national total, according to data from the General Council of Notaries.

Madrid and Andalusia, especially the Costa del Sol, have become the preferred destination for large investors and foreigners with high purchasing power.

Regarding mortgage amounts in other autonomous communities, in Valencia the average mortgage rose by 74%, and in the Balearic Islands, by 70%, in a decade.

Following are the Canary Islands (68%); La Rioja (63%); Murcia (56%); Catalonia (53%); Navarre (50%); Basque Country (45%); Cantabria and Castilla La Mancha (43%); Castilla y León (37%); Galicia (35%); Asturias (33%); Aragon (31%), and Extremadura (28%).